South Carolina Personal Lines Practice Exam

Is coverage B - Other Structures automatically included with DP-3 policy?

1. Yes, it is automatically included

2. No, it must be added separately

3. It is included only if requested

4. It is included for an extra fee

The correct answer is: No, it must be added separately

Under the DP-3 policy, which is a specialized type of dwelling insurance, coverage for Other Structures is not automatically included. Instead, this coverage must be added separately to the policy. Other Structures coverage is designed to protect structures that aren't attached to the main dwelling, such as garages, sheds, or fences. In the case of the DP-3 policy, it provides a broader scope of coverage than the other forms, particularly as it pertains to the dwelling itself. However, coverage for Other Structures is a distinct segment and requires explicit inclusion in the policy terms. This ensures that property owners have control over their coverage options and can tailor their policy according to their own specific needs and the structures they own. By requiring this coverage to be added separately, the insurer allows for greater customization and potentially can reduce costs for policyholders who may not have many additional structures to insure.